Who is an LIT, who are LITs?
In April 2016, a Trustee in Bankruptcy will have a new name – Licensed Insolvency Trustee or LIT. LITs is the plural form of LIT, just like DRs is the plural form of DR.. You’ll see and hear a change in all forms of media – online, television, radio and print. So what does this mean? Let’s take a look at each part of the new name.
Insolvency means a state where you can’t pay your debts. Just like today’s Trustees in Bankruptcy, LITs are licensed by the government to help you make a plan and file a consumer proposal or for bankruptcy.
LITs also help with reorganizing finances to relieve pressure and create financial health. Trustees in Bankruptcy do that every day – take situations that are unbearable and feel impossible to resolve, and turn them around.
Although the name is different, the result is the same – Licensed Insolvency Trustees are the only people regulated by the government through the Office of the Superintendent of Bankruptcy (OSB) to help you with a consumer proposal or bankruptcy.
Why is the name changing?
The change in the name means better clarity for what Trustees in Bankruptcy do – Trustees in Bankruptcy don’t just help with bankruptcy, they are also licensed to help you file a consumer proposal. The new name better reflects the scope of what a Trustee in Bankruptcy can do for you – help work through debt and money problems with effective solutions.
And the name change gets rid of the bad feelings, thoughts, and guilt behind the word ‘bankruptcy’. When people hear the word ‘bankruptcy’, they think of shame and a life in shambles, but, in truth, bankruptcy is the beginning of a fresh start. It is the decision to take a hard situation and find a solution.
Bankruptcy is hope, but it’s simply not perceived that way. When people hear the term Trustee in Bankruptcy, all they can hear is the negative. With a Licensed Insolvency Trustee, you understand that the trustee is on your side, essentially taking your inability to pay your creditors and reorganizing things to find a healthier financial future.
What does this mean for Canadians?
In short, the name change goes no further than that – a name change. There is no change to the help offered – an LIT will still offer all debt management solutions that a Trustee in Bankruptcy currently does. For Canadians with money problems, a LIT will offer the same relief that a Trustee in Bankruptcy does, whether they choose a consumer proposal, or a bankruptcy.
In April 2016, trustees will have a new name – Licensed Insolvency Trustee – but the same goal: help Canadians find their way out of debt.